In 1992 George LeMaitre was appointed CEO of LeMaitre Vascular, Inc. (NASDAQ:LMAT). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does George LeMaitre's Compensation Compare With Similar Sized Companies?
Our data indicates that LeMaitre Vascular, Inc. is worth US$521m, and total annual CEO compensation was reported as US$1.4m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$438k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$2.1m.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Talking in terms of the sector, salary represented approximately 23% of total compensation out of all the companies we analysed, while other remuneration made up 77% of the pie. LeMaitre Vascular is paying a higher share of its remuneration through a salary in comparison to the overall industry.
Most shareholders would consider it a positive that George LeMaitre takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion. You can see, below, how CEO compensation at LeMaitre Vascular has changed over time.
Is LeMaitre Vascular, Inc. Growing?
On average over the last three years, LeMaitre Vascular, Inc. has seen earnings per share (EPS) move in a favourable direction by 15% each year (using a line of best fit). In the last year, its revenue is up 11%.
This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has LeMaitre Vascular, Inc. Been A Good Investment?
LeMaitre Vascular, Inc. has generated a total shareholder return of 5.9% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.
It looks like LeMaitre Vascular, Inc. pays its CEO less than similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. The total shareholder return might not be amazing, but that doesn't mean that George LeMaitre is paid too much. It's great to see a company that pays its CEO reasonably, even while growing. But it would be nice if insiders were also buying shares. Looking into other areas, we've picked out 1 warning sign for LeMaitre Vascular that investors should think about before committing capital to this stock.
Important note: LeMaitre Vascular may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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